BURLINGTON, Ontario — Canada’s RV and camping industry has been raising an emerging issue with respect to the small business deduction (SBD) and its applicability for small family-owned campgrounds throughout the past two years with the Canadian federal government, the Canadian Camping & RV Council reported.
Tax rules related to small campground’s eligibility of the small business tax deduction (SBD) and a corporate tax of about 15 percent date back to the 1970s and have not materially differed, said Shane Devenish, executive director.
However, Canada Revenue Agency began to change their interpretation on a number of small campgrounds deeming them to be a passive “investment business,” basically telling these campground owners that they are inactive and that they just “derive income (campsite fees) from their property” and don’t do too much of anything else, he explained.
“This type of business — an apartment building — would be an accurate ‘investment business,’ which would not eligible for the small business tax deduction and comes with an approximate tax of 50 percent. That is an increase of more than 300 percent than what all other small businesses in Canada pay, including small private campgrounds,” said Devenish.
The Liberal government is currently reviewing their taxation policies on all small businesses and have been asking Canadians for their input during consultations that end Oct. 2.
To make it easy that voices are heard, Canadian Camping and RV Council developed an advocacy website that fully explains the issue and also gives campground operators and their campers an opportunity to send a letter to their local member of Parliament.
The Canadian Camping and RV Council are asking every private campground, RV dealer and camping enthusiast to go to www.faircamptax.ca and click on the “Take Action” button.
SOURCE: Canadian Camping and RV Council press release